Giglio Group SpA (GGTV) SWOT Analysis / TOWS Matrix / MBA Resources
Broadcasting & Cable TV
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Giglio Group SpA (Italy)
Based on various researches at Oak Spring University , Giglio Group SpA is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, technology disruption, increasing energy prices,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Giglio Group SpA can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Giglio Group SpA, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Giglio Group SpA operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Giglio Group SpA can be done for the following purposes –
1. Strategic planning of Giglio Group SpA
2. Improving business portfolio management of Giglio Group SpA
3. Assessing feasibility of the new initiative in Italy
4. Making a Broadcasting & Cable TV sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Giglio Group SpA
Strengths of Giglio Group SpA | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Giglio Group SpA are -
Organizational Resilience of Giglio Group SpA
– The covid-19 pandemic has put organizational resilience at the centre of everthing Giglio Group SpA does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Giglio Group SpA has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to lead change in Broadcasting & Cable TV
– Giglio Group SpA is one of the leading players in the Broadcasting & Cable TV industry in Italy. Over the years it has not only transformed the business landscape in the Broadcasting & Cable TV industry in Italy but also across the existing markets. The ability to lead change has enabled Giglio Group SpA in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Giglio Group SpA is one of the most innovative firm in Broadcasting & Cable TV sector.
Sustainable margins compare to other players in Broadcasting & Cable TV industry
– Giglio Group SpA has clearly differentiated products in the market place. This has enabled Giglio Group SpA to fetch slight price premium compare to the competitors in the Broadcasting & Cable TV industry. The sustainable margins have also helped Giglio Group SpA to invest into research and development (R&D) and innovation.
High brand equity
– Giglio Group SpA has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Giglio Group SpA to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Giglio Group SpA has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Giglio Group SpA has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Giglio Group SpA in the Services sector have low bargaining power. Giglio Group SpA has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Giglio Group SpA to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Giglio Group SpA is present in almost all the verticals within the Broadcasting & Cable TV industry. This has provided Giglio Group SpA a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Effective Research and Development (R&D)
– Giglio Group SpA has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Giglio Group SpA staying ahead in the Broadcasting & Cable TV industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Giglio Group SpA has one of the best training and development program in Services industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Giglio Group SpA is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Giglio Group SpA is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Giglio Group SpA emphasize – knowledge, initiative, and innovation.
Weaknesses of Giglio Group SpA | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Giglio Group SpA are -
Workers concerns about automation
– As automation is fast increasing in the Broadcasting & Cable TV industry, Giglio Group SpA needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to strategic competitive environment developments
– As Giglio Group SpA is one of the leading players in the Broadcasting & Cable TV industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Broadcasting & Cable TV industry in last five years.
Aligning sales with marketing
– From the outside it seems that Giglio Group SpA needs to have more collaboration between its sales team and marketing team. Sales professionals in the Broadcasting & Cable TV industry have deep experience in developing customer relationships. Marketing department at Giglio Group SpA can leverage the sales team experience to cultivate customer relationships as Giglio Group SpA is planning to shift buying processes online.
High bargaining power of channel partners in Broadcasting & Cable TV industry
– because of the regulatory requirements in Italy, Giglio Group SpA is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Broadcasting & Cable TV industry.
High dependence on Giglio Group SpA ‘s star products
– The top 2 products and services of Giglio Group SpA still accounts for major business revenue. This dependence on star products in Broadcasting & Cable TV industry has resulted into insufficient focus on developing new products, even though Giglio Group SpA has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at Giglio Group SpA, in the dynamic environment of Broadcasting & Cable TV industry it has struggled to respond to the nimble upstart competition. Giglio Group SpA has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Giglio Group SpA is slow explore the new channels of communication. These new channels of communication can help Giglio Group SpA to provide better information regarding Broadcasting & Cable TV products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, Giglio Group SpA has high operating costs in the Broadcasting & Cable TV industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Giglio Group SpA lucrative customers.
Skills based hiring in Broadcasting & Cable TV industry
– The stress on hiring functional specialists at Giglio Group SpA has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow decision making process
– As mentioned earlier in the report, Giglio Group SpA has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Broadcasting & Cable TV industry over the last five years. Giglio Group SpA even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Giglio Group SpA supply chain. Even after few cautionary changes, Giglio Group SpA is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Giglio Group SpA vulnerable to further global disruptions in South East Asia.
Giglio Group SpA Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Giglio Group SpA are -
Buying journey improvements
– Giglio Group SpA can improve the customer journey of consumers in the Broadcasting & Cable TV industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Use of Bitcoin and other crypto currencies for transactions in Broadcasting & Cable TV industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Giglio Group SpA in the Broadcasting & Cable TV industry. Now Giglio Group SpA can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Giglio Group SpA can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Using analytics as competitive advantage
– Giglio Group SpA has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Broadcasting & Cable TV sector. This continuous investment in analytics has enabled Giglio Group SpA to build a competitive advantage using analytics. The analytics driven competitive advantage can help Giglio Group SpA to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Giglio Group SpA to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Broadcasting & Cable TV industry, but it has also influenced the consumer preferences. Giglio Group SpA can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Giglio Group SpA can use these opportunities to build new business models that can help the communities that Giglio Group SpA operates in. Secondly it can use opportunities from government spending in Broadcasting & Cable TV sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Giglio Group SpA in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Broadcasting & Cable TV industry, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Giglio Group SpA can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Giglio Group SpA is facing challenges because of the dominance of functional experts in the organization. Giglio Group SpA can utilize new technology in the field of Broadcasting & Cable TV industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Giglio Group SpA has opened avenues for new revenue streams for the organization in Broadcasting & Cable TV industry. This can help Giglio Group SpA to build a more holistic ecosystem for Giglio Group SpA products in the Broadcasting & Cable TV industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Giglio Group SpA to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Loyalty marketing
– Giglio Group SpA has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Giglio Group SpA External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Giglio Group SpA are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Giglio Group SpA in the Broadcasting & Cable TV sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Giglio Group SpA high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Giglio Group SpA business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Giglio Group SpA.
Regulatory challenges
– Giglio Group SpA needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Broadcasting & Cable TV industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Giglio Group SpA can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Giglio Group SpA prominent markets.
Stagnating economy with rate increase
– Giglio Group SpA can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Broadcasting & Cable TV industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Giglio Group SpA in Broadcasting & Cable TV industry. The Broadcasting & Cable TV industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Giglio Group SpA may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Broadcasting & Cable TV sector.
Technology acceleration in Forth Industrial Revolution
– Giglio Group SpA has witnessed rapid integration of technology during Covid-19 in the Broadcasting & Cable TV industry. As one of the leading players in the industry, Giglio Group SpA needs to keep up with the evolution of technology in the Broadcasting & Cable TV sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– Giglio Group SpA needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Giglio Group SpA can take advantage of this fund but it will also bring new competitors in the Broadcasting & Cable TV industry.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Giglio Group SpA needs to understand the core reasons impacting the Broadcasting & Cable TV industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Giglio Group SpA is facing in Broadcasting & Cable TV sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Giglio Group SpA Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Giglio Group SpA needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Giglio Group SpA is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Giglio Group SpA is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Giglio Group SpA to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Giglio Group SpA needs to make to build a sustainable competitive advantage.